Itaú BBA maintains buy ratings for Copasa and Copel

Itaú BBA has issued positive outlooks for two major Brazilian utility companies, Copasa and Copel, maintaining buy recommendations for both.

For Copasa, the bank raised its target price from R$ 55.90 to R$ 82.50, suggesting a potential appreciation of nearly 53%. The bank identifies a historic investment cycle for the sanitation company, driven by universalization requirements and efficiency gains following privatization. Itaú BBA estimates that Copasa’s regulatory asset base could nearly double by 2033.

Regarding Copel, Itaú BBA reiterated a buy recommendation with a target price of R$ 17.50. The bank highlights Copel’s resilience in the face of macroeconomic volatility and regulatory uncertainty, noting its diversified exposure to both power distribution and generation. The analysis points to low leverage, real assets, and an attractive dividend profile as key strengths that offer protection and consistent returns across various energy market scenarios.